Donald Trump has retreated from his threat to tear up part of the US-EU trade deal by hiking tariffs on car imports, instead giving the bloc until July 4 to implement its side of the agreement. The US president warned that failure to comply would result in 'much higher' tariffs.
In a post on Truth Social, Trump said he had spoken to European Commission President Ursula von der Leyen and 'agreed to give her until our Country's 250th Birthday' to ratify the deal. The Fourth of July marks 250 years since the American colonies declared independence from British rule.
The climbdown came a day after six hours of formal ratification talks in Brussels between MEPs, member states and the European Commission. The EU has been pressing Trump to honour the deal struck at his Scottish golf course last summer, despite a US Supreme Court ruling that his 'liberation day' tariffs were illegal.
German MEP Bernd Lange, chair of the European Parliament's trade committee, indicated a deal was close, saying MEPs would work 'expeditiously' to ensure the 'spirit and letter' of the agreement. EU Trade Commissioner Maroš Šefčovič reported 'considerable progress' after talks, with the next 'triologue' scheduled for May 19.
MEPs are reportedly pushing for steel to be included in the deal, with exports to the US taxed at 50%. Von der Leyen said the bloc had made 'good progress' towards ratifying the deal by early July, adding that both sides remained 'fully committed' to its implementation.
